Selling a Property in the Algarve
Selling a Property in the Algarve
Selling a property in Portugal can be straightforward when you understand the steps involved. At Van Rulo Real Estate, we help you follow all steps smoothly and can help you get all the necessary documents
- Property Valuation – Setting the Right Price
The first step is a professional property valuation. Correct pricing ensures your home is competitive, attracts genuine buyers, and reflects its true market value. An accurate valuation helps avoid long waiting times and unnecessary renegotiations later.
- Preparing Documentation – Essential for a Smooth Sale
Having all documents up to date is crucial. Missing paperwork can delay or even prevent the sale. Below is a complete list of the documents required to sell a property in Portugal:
Mandatory Documents
- Identification Documents – Valid passport, residence card, or citizen card of all sellers.
- Caderneta Predial (Tax Registration Document) – Issued by the Tax Authority (Autoridade Tributária), showing fiscal details of the property (location, type, size, and taxable value).
- Certidão Predial (Land Registry Certificate) – Issued by the Land Registry (Conservatória do Registo Predial), proving ownership and disclosing any encumbrances (mortgages, liens, usufruct rights, etc.).
- Energy Certificate (Certificado Energético) – Mandatory for all property sales, indicates the property’s energy efficiency rating.
- Habitation License (Licença de Utilização) – Confirms the property complies with construction and safety regulations, proving it is legally fit for habitation.
- Alternative: For properties built before 1951, a Pre-1951 Certificate (declaring no habitation license required).
- Ficha Técnica de Habitação (Technical Housing File) – Required for properties built after 2004, containing detailed technical and construction information.
Additional Documents That May Be Required
- Property Plans – Approved architectural plans filed with the local council.
- IMI Payment Proof (Property Tax Receipt) – Demonstrates that municipal property tax is up to date.
- Condominium Declaration – If the property is part of a condominium, a signed statement from the condominium management confirming no outstanding fees.
- Encumbrance-Free Declaration – Proof that the property has no debts, charges, or pending legal disputes (often included in the Certidão Predial, but sometimes requested separately).
- Mortgage Documents – If the property is mortgaged, details for redemption at the time of sale.
- Power of Attorney (Procuração) – If the seller cannot be present, a legal representative can act on their behalf through a notarized power of attorney.
Having these documents ready will make the process faster, smoother, and more attractive for serious buyers.
- Marketing the Property – Maximum Visibility
Our professional real estate agency will:
- Take high-quality photos, videos, and even drone footage.
- Write engaging property descriptions in multiple languages.
- Advertise on top national and international real estate portals.
- Promote through their buyer network and partner agencies worldwide.
This maximizes your property’s exposure, especially given the Algarve’s strong international buyer market.
- Negotiation – Reaching an Agreement
Once offers are received, your agent will manage negotiations. Good communication and market expertise help reach a fair deal that satisfies both seller and buyer.
- Promissory Contract (Contrato de Promessa de Compra e Venda)
After agreeing on terms, both parties sign a promissory contract.
- The buyer usually pays a deposit (commonly 10%).
- The contract specifies the final sale price, deadlines, and obligations of both parties.
- It provides legal security: if the buyer withdraws, they lose the deposit; if the seller withdraws, they must return double the deposit.
- Final Deed (Escritura de Compra e Venda)
The sale is concluded with the public deed at the notary.
- The buyer pays the remaining balance.
- Ownership is officially transferred.
- The seller receives full payment, minus the deposit already paid.
- Post-Sale Considerations
After completion:
- Cancel or transfer utilities (water, electricity, gas, internet).
- Inform the tax authorities about the sale.
- Be aware of capital gains tax implications, particularly for non-resident sellers.
